The USD/CAD pair builds on the overnight bounce from the 1.4300 mark, over a one-week low and gains strong follow-through positive traction on Thursday. The intraday move up remains unabated through the first half of the European session and lifts spot prices to a fresh daily high, around the 1.4385 region in the last hour.Crude Oil prices drift lower amid some profit-taking following the recent sharp rise to the highest level since July 2024, which is seen undermining the commodity-linked Loonie. Apart from this, the emergence of some US Dollar (USD) dip-buying, bolstered by growing acceptance that the Federal Reserve (Fed) will pause its rate-cutting cycle later this month, turn out to be a key factors acting as a tailwind for the USD/CAD pair. Meanwhile, the US Producer Price Index and Consumer Price Index (CPI), released on Tuesday and Wednesday, respectively, pointed to signs of abating inflationary pressures. This, in turn, suggests that the Fed may not necessarily exclude the possibility of cutting rates further by the end of this year, which led to the overnight sharp decline in the US Treasury bond yields and might keep a lid on any further USD move up. Furthermore, easing fears about US President-elect Donald Trump’s disruptive trade tariffs remains supportive of the upbeat market mood. This might further hold back the USD bulls from placing aggressive bets and cap gains for the USD/CAD pair. Traders now look to the US economic docket – featuring monthly Retail Sales, the usual Weekly Initial Jobless Claims and the Philly Fed Manufacturing Index – for a fresh impetus.More By This Author:Japanese Yen Trims A Part Of Strong Intraday Gains; USD/JPY Bounces Off Multi-Week Low Australian Dollar Extends Gains, Upside Limited Silver Price Forecast: XAG/USD Struggles Near $29.65 Area, Seems Poised To Weaken Further
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